HomeMy Public PortalAboutLTC 026-2016 Legislative Session Week 3 Report - January 25-29, 2016BAL HARBOUR
V I L L A G E -
OFFICE OF THE VILLAGE MANAGER
LETTER TO COUNCIL
NO. 026-2016
To: Mayor Martin Packer and Members of the Village Council
From: Jorge M. Gonzalez, Village Manager
Date: February 5, 2016
Subject: Legislative Session Week 3 Report - January 25 - 29, 2016
The purpose of this Letter to Council (LTC) is to transmit the attached Legislative Session
Week 3 Report provided by Ron L. Book.
If you have any questions or need any additional information, please feel free to contact me.
Rondld L. Book, P. R
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2016 Session
Week 3 Report
At the end of week 3, the House and Senate proposed General Appropriations bills were released, with the Senate
budget totaling just over $80 billion, and the House budget just under. Once the two chambers have passed their
versions of the budget they will enter into budget conference negotiations over the next few weeks, ending likely
during the last week of the Legislative Session. Major funding differences at this point in session include natural
resources funding, economic development incentives, school construction, higher education funding, and the court
system funding.
Economic Development and Film Incentives: The Senate Commerce and Tourism Committee this week, passed
an omnibus economic development bill, SB 1646 by Senator Detert, that restructures the state's economic incentive
and development programs. The next stop for this bill is the Senate Appropriations committee on Transportation
and Economic Development, which includes funding for this program, in its budget proposal released this week.
The budget proposal also includes $6 million to be allocated to Visit Florida, to help advertise movies that
showcase Florida as a destination. Senator Detert and Senator Thompson expressed concerns with this proposal to
Chairman Latvala, noting that Visit Florida was not the preferred location for funding of this sort, and that the
appropriate area for the entertainment film industry funding be a separate item under Enterprise Florida. This
remains to be finalized as the legislature goes through the budget process.
The Senate Transportation and Economic Development subcommittee budget proposal does contain the Governor's
Enterprise Fund priority, which is strongly supported by Senator Latvala, the chairman of this subcommittee, and
who is slated to become the full Appropriations committee chairman next Session. The Governor has requested
$250 million for this fund. In the Senate proposal, to qualify for funding from the Enterprise Fund, a project will
have to create at least 10 jobs and receive 20 percent of its support from local contributions, in addition to providing
a 3 to 1 return on investment as calculated by state economists. The proposal limits the duration of incentive
contracts for all programs to 10 years, and mandates that the final incentive deals approved by the Governor include
the same requirements and metrics as the project descriptions provided to the Legislature. Lastly, $100 million of
this fund would be allocated to this fund once the settlement money is awarded to Florida from the BP oil spill case.
Conversely, the future of this economic incentives package in the House, is uncertain at this time, with House
leadership philosophically opposed to incentives.
Local Government Water Projects: While both the House and Senate Agriculture and Natural Resources
Appropriations subcommittee budgets have been released, no funding for water projects was included in either
House or Senate preliminary proposal. Water project funding allocations are not expected until the end of the
budget conference process.
Should you need further information on these or other issues, please call or email us and we will provide that
information.
Harbour Centre 118851 N.E. 29th Ave., Ste.1010 I Aventura, Fl, 33180
Phone: 305.935.1866 I Fax: 305.935.9737
104 West Jefferson Street I Tallahassee, FL 32301
Phone: 850.224.34271 Fax 850.224.3361
Gaming Compact: During week 3, the Senate Regulated Industries committee held a second workshop to hear a
presentation by Amy Baker, the state's economist, and is the director of the State's Economic and Demographic
Research. Gaming entities and members of the public where given the opportunity to speak on the Compact. In Ms.
Baker's presentation, and in her answers to members' questions during the committee meeting, one of the more
important points she stressed, was that with this Compact as written, the "cannibalization" of the state's many
existing gaming businesses, is likely. This is important to note because the existing gaming entities have been
working to include various other issues in the Compact, such as tax parity, slots parity, and decoupling. At this
stage, the inclusion of these issues is tied to members' votes, and without them, the Compact could be in jeopardy.
The Legislature must ratify the Compact in order for it to become finalized. The Senate has not indicated its plan to
meet in the next few weeks to take up the compact to authorize the Governor's agreement, nor has the House
Regulatory Affairs committee. We will continue to update you on this important issue.
Tax Cut Package: The preliminary Senate budget proposal does not include the Governor's top priority this year,
of $1 billion in tax cuts. However this week in the House, Representative Gaetz, Chair of the Finance and Tax
committee, held a workshop to review the House tax cut package proposal, which does include almost $1 billion in
cuts. It includes cuts to 33 different taxes, according to the House, and would amount to approximately $989
million. What the House cut package does not include is the Governor's proposal to eliminate corporate income
taxes on manufacturers and retail businesses. This cut would be just under $400 million this fiscal year and $770
million annually, beginning in the next fiscal year. The House plan would include four sales tax holidays: A 10-day
reduction for back to school shopping in August; a reduction on taxes for hunting and fishing gear, including
firearms, ammunition and fishing poles for one day in August; a reduction to encourage people to shop at small
businesses on the Saturday after Thanksgiving; and a cut in sales taxes on technology, including computers, tablets,
and cell phones, which would amount to $116 million in sales tax reductions next year. The House plan also
includes reductions in taxes on commercial leases and continues a sales tax exemption on manufacturing
equipment.
The atmosphere in the Senate is entirely different, as Chairman Lee has used strong language questioning the
Governor's and House tax cut plans. He has made it known that he is wary of long-term tax reductions that would
cut too far into the state's budget, and could have strong implications if the economy should take a stronger turn
downward. We reported earlier this month that the state revenue estimating conference released a budget projection
that lowered expected state funding by $400 million.
Transportation Network Companies (Uber, Lyft ride sharing services): HB 509 (Gaetz, M.) passed the full
House this week, with a vote of 108 — 10. The bill as passed, would take effect July 1, 2016, and accomplish the
following:
• Preempts to the state the regulation of Transportation Network Companies (TNCs) and creates a regulatory
framework for the operation of TNCs.
• Prohibits local governments from imposing taxes or licenses on TNCs relating to the provision of TNC
service.
• Provides that airports may charge an annual fee to TNCs of up to $5,000.
• Defines "transportation network company" as an entity granted a permit under s. 316.680, F.S., to operate
in this state using a digital network or software application service to connect riders to TNC service
provided by drivers. A TNC is not deemed to own, control, operate, or mange the vehicles used by drivers;
is not deemed to control or mange drivers; and is not a taxicab association or for -hire vehicle owner. A
TNC does not include an individual, corporation, partnership, sole proprietorship, or other entity arranging
nonemergency medical transportation for individuals qualifying for Medicaid or Medicare pursuant to a
contract with the state or a managed care organization. The bill also provides other definitions related to
TNCs.
• Provides that a TNC is not a common carrier and does not provide taxi or for -hire vehicle service.
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